1. Business
  2. Economics
  3. need help with economeetrics problem thanks...

Question: need help with economeetrics problem thanks...

Question details

Need help with economeetrics problem. Thanks!Note: The book problems are from appendices B and C in the 6th edition. 1 - [1.5 pts] Appendix B, problem 10. 2 [3 pts] Let X and Y be random variables with means x and y respectively. The covariance of X and Y is given by Cor(X, Y) = El(X-1x)(Y-μ). (i) Prove the following three equalities: E(XY)-#xPv. = (ii) Suppose that E(Y|X)- E(Y). Show that Cov(X, Y) - 0 (hint: use the law of iterated expectations to show that EXY)-xy) In this case, what is the corelation coefficient between X and Y, Corr(X, Y), equal to? (iii) Suppose that Cov(X, Y) 0. Does this imply that X and Y are independent? Explain vour reasoning

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution